Deed Restrictions & Tax Benefits - Posted by mdtsfp

Real Estate Investing Real Estate Law
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Posted by Diane (TX) on November 06, 2002 at 17:28:34:

For the tax benefits, I think you are thinking of granting a conservation easement. Special rules apply for ?qualified conservation contributions.? To qualify, you have to be willing to restrict the use of your real property for conservation purposes via an easement in perpetuity granted to a qualified organization. Additionally, restrictions must be placed on transfers by the donee.

The charitable contribution is the value with the easment v. the value without the easement. You would need a written appraisal. And you would need to hook up with a charity that would be interested in this. Nature Conservancy or the Sierra Club come to mind.

The environmental organizations are more familiar with this, so follow up with them if you decide to pursue this.

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Deed Restrictions & Tax Benefits - Posted by mdtsfp

Posted by mdtsfp on November 06, 2002 at 15:16:29:

Can anyone expand or share with me the specific logistics of deed restricting property (say a large vacation home with land) so that the property can never be developed down the road or some such, because the current owner doesn’t want future development on the property, i.e. preserving pristine property? And how that may or may not provide a current or future tax benefit to the current owner because of the lost highest and best use? Is this a good idea for certain people? What type of people? Is this rare? Thank you in advance for your response.